On the Issues: New Magazine, City-Splitting Highways, and More

Matt Fleck, Hans Hirwa, and Elizabeth Wason

Twice a month, we’re compiling the most relevant news stories from diverse sources online, connecting the latest environmental and energy economics research to global current events, real-time public discourse, and policy decisions. Keep reading, and feel free to send us your feedback.

Here are some questions we’re asking and addressing with our research chops this week:

What’s the state of US greenhouse gas emissions as of 2023, and how could new and recent regulations and policies affect emissions moving forward?

US emissions fell in 2023 for the first time since 2020, primarily thanks to less coal use. While the Inflation Reduction Act—the 2022 law that incentivizes the development of clean energy technology—likely had little effect on emissions so soon after the law’s passage, researchers expect the law to increasingly affect US emissions in coming years. In an article in the latest (new!) issue of Resources magazine, Resources for the Future (RFF) scholars Maya Domeshek and Nicholas Roy discuss recent research about the projected effects of the Inflation Reduction Act on the power sector. “We see pretty dramatic decreases in emissions in the power sector across the models: something like 47–83 percent below 2005 levels by 2030,” says Domeshek. A roundup of research from the past year is the focus of the issue, including RFF’s work on federal regulations that could help maintain a downward trend in emissions, the global economic benefits of reducing emissions enough to meet Paris Agreement goals, and more. Check out the digital magazine here—and if you’ve supported RFF with a recent donation, keep an eye on your snail-mailbox for your print copy.

As New York City develops new infrastructure projects, how has the city involved local communities in related decisionmaking and implementation, and what’s the city’s current approach to community engagement?

In an annual address last week, Governor Kathy Hochul (D-NY) announced priority infrastructure projects for New York City in 2024, including expanded subway lines and a light-rail connection between Brooklyn and Queens. Another big-ticket item for infrastructure in the city is a renovation to the Brooklyn-Queens Expressway, proposed by New York City Mayor Eric Adams, for the aging highway, which serves heavy traffic in both boroughs and is a major source of local pollution. In a new blog post, RFF scholars Beia Spiller and Suzanne Russo examine the history of the highway, along with the potential for local input on the proposed renovation of a highway section in Brooklyn with partial funding from the US Department of Transportation (US DOT). “If the US DOT decides to grant the funds, it should carefully scrutinize how the city is incorporating community feedback, with the aim of ensuring that federal investment in local infrastructure does not continue to exacerbate existing inequities over the coming decades,” the authors say.

How can facilities that produce hydrogen fuel qualify for the tax credit for clean hydrogen production that’s provided by the Inflation Reduction Act, according to new guidance from the US Department of the Treasury?

Just before the holidays, the US Department of the Treasury proposed long-awaited guidance on the implementation of the 45V tax credit, which incentivizes the production of clean hydrogen fuel. In particular, the guidance addresses a tricky question: How can facilities claim they are using clean electricity in their production of hydrogen? The Treasury Department has proposed that facilities can purchase credits that fulfill three requirements to satisfy this claim: the credits must be derived from clean electricity generated by a relatively new facility, sourced nearby, and produced in the same hour that each credit is used. In a new blog post, RFF Fellow Aaron Bergman examines these requirements, along with additional questions on which the Treasury Department has requested comments from the public. “Finding the right balance for this inherent trade-off between stimulating hydrogen production and limiting life-cycle emissions ultimately will be a judgment call,” says Bergman.

Expert Perspectives

In Focus: The New Social Cost of Carbon

In December, the US Environmental Protection Agency announced an updated estimate of the social cost of carbon. The new estimate asserts that each ton of carbon dioxide emitted into the atmosphere costs society $190—almost four times higher than the current government-wide estimate of $51 per ton. The new estimate will be used to help determine the benefits and costs of the agency’s regulations going forward. Brian C. Prest, a fellow at RFF and director of RFF’s Social Cost of Carbon Initiative, shares his thoughts on the new estimate and how the figure may inform future regulations.

Resources Roundup

Exploring Upcoming Decisions in Energy, Climate, and the Environment in 2024

Decisions on policies and programs related to climate change, energy, and the environment will come up for all levels of government in 2024. In RFF’s annual Big Decisions event on January 24, RFF President and CEO Richard G. Newell will join climate and environmental experts to discuss these upcoming decisions, along with ongoing US efforts to reduce emissions and adapt to the effects of climate change. RSVP to attend the event in person or online.

Major Policy Stories of Last Year and the Year to Come

Some major events in 2023 included several new regulations from the US government that aim to reduce pollution and greenhouse gas emissions and an EU phase-in of its carbon tariff. A recent episode of the Resources Radio podcast features guests Karen Palmer, a senior fellow at RFF, and Joseph Majkut, director of the Energy Security and Climate Change Program at the Center for Strategic Studies, who discuss the big developments of 2023, along with energy and environmental issues to watch for in 2024. “The policy development that stands out the most for me is a thing that didn’t happen in 2023—or maybe it’s better to say it didn’t happen yet—and that’s legislation to address the various regulatory or permitting or, maybe, other barriers to investment in energy infrastructure,” says Palmer.

Sustainable Mining for Critical Minerals

Demand for critical minerals that are used in electric vehicle batteries, such as nickel and cobalt, is growing. However, the mining practices associated with extracting these minerals can negatively affect local communities and the environment. In an op-ed for Scientific American, RFF Fellow Beia Spiller and Sangita Kannan, a PhD student at the Colorado School of Mines and former intern at RFF, share their thoughts on innovative alternatives to conventional mining practices. “If the federal government invests in these innovations and others, we can achieve national electrification goals and avoid disturbing Indigenous lands and local communities with harmful mining practices,” the authors say.

Benefits of Biomes in a Changing Climate

Ecosystems and biomes are shifting away from the equator and toward the North and South Poles due to climate change. This shift may have particularly large effects on national economies in the Global South, according to a new paper that’s jointly authored by a recent Resources Radio podcast guest, colleagues at the RFF-CMCC European Institute on Economics and the Environment, and other scholars. Bernie Bastien-Olvera, a postdoctoral researcher at the University of California, San Diego, notes in the podcast, “Our estimate is that biome shifts would cause, on average, a 1 percent reduction of GDP … This is pretty large, considering that we are not taking into account, for example, other larger phenomena in the ecosystems; for example, wildfires or biodiversity loss and how that could affect the market economy.”

Measuring Progress and Promises at the 28th Conference of the Parties

The 28th Conference of the Parties, an annual climate conference known as COP, concluded with a UN-brokered deal that called on nations to transition away from fossil fuels to reach net-zero emissions by 2050. The deal followed two weeks of discussions and events on renewable energy development and blending climate and trade policy, among other issues. A group of RFF experts hosted a series of events at the conference and spoke with leaders in government, research, and industry. After the conference, these experts shared insights from COP28 in an article on the Common Resources blog. “[US officials] want to find ways that their regions … can succeed during the energy transition and deal with the impacts of climate change,” says RFF President and CEO Richard G. Newell.

#ChartOfTheWeek

US emissions fell in 2023—but the current rate of emissions reductions will need to more than triple to meet the US Paris Agreement goal for 2030. The United States isn’t alone: collectively, all nations that pledged to reduce emissions under the Paris Agreement are behind schedule. The economic benefits of achieving Paris Agreement goals and limiting the increase in global temperature are enormous. Limiting global warming to 1.5°C could yield approximately $605 trillion in cumulative net global benefits through the year 2300; limiting warming to 2°C could yield $467 trillion in cumulative benefits. “Accelerating cuts to greenhouse gas emissions in the near future will serve society well for many decades to come,” say RFF scholars Jordan Wingenroth, Brian C. Prest, and Kevin Rennert.

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